The American global corporation, Xerox Cop., that sells print and digital document solutions, is giving it’s control to Japan’s Fujifilm Holdings Corp. The deal was closed at $18 billion.
Fujifilm says it will cut 10000 jobs at it’s Xerox joint venture. Xerox has a market value of 1.3 billion. Current Xerox shareholders will receive a cash dividend of $9.80 per share. Tokyo based Fujifilm, will receive the owning of 50.1 percent of the combined entity. Xerox has been a very successful company since the 20th Century that their copiers were so ubiquitous and the name Xerox became a verb.
Investor Carl Icahn had made Xerox to explore “strategic options,” including making its joint venture with Fujifilm, and electing four new directors. “They probably felt pressured to do something because Icahn and them are going to get their way,” said Argus Research Corp. analyst Jim Kelleher.
Xerox shares rose 4 percent to $33.99 in New York after these decisions. “I don’t think Icahn thought this was a transformative deal, but a way to jazz up the stock price a little,” Kelleher said.
“The proposed combination has compelling industrial logic and will unlock significant growth and productivity opportunities for the combined company, while delivering substantial value to Xerox shareholders,” Jacobson said
Fujifilm said it will subject to a one-time expense of 72 billion yen ($662 million) over three years. The Japanese company, which generates almost 60 percent of sales from overseas, is pushing to shift it’s focus to managed-print services and medical imaging.